Analytica (one of two major businesses within HRL Holdings) delivered record third quarter revenues driven by honey and environmental testing service lines. Also, HAZMAT (the other main business) also performed well across A&NZ, explains Morgans.

The broker highlights a recovery in environmental testing activity, which should support an ongoing improvement in margins as volumes continue to grow over FY22/23.

With a solid medium-term growth outlook and M&A potential, the Add rating is maintained. The target price of $0.16 is unchanged.

Sector: Commercial & Professional Services.

Target price is $0.16.Current Price is $0.12. Difference: $0.04 - (brackets indicate current price is over target). If HRL meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena